5(1)The trust deed must contain provision as to the functions of the trustees.U.K.
(2)The functions of the trustees must be so expressed that it is apparentthat their general functions are—
(a)to receive sums from the founding company and other sums (by way of loanor otherwise);
(b)to acquire securities;
(c)to transfer securities or sums (or both) to persons who are beneficiariesunder the terms of the trust deed;
[F1(cc)to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;]
(d)to transfer securities to the trustees of profit sharing schemes approvedunder Schedule 9 to the Taxes Act 1988, for a price not less than the pricethe securities might reasonably be expected to fetch on a sale in the openmarket;
(e)pending transfer, to retain the securities and to manage them (whether byexercising voting rights or otherwise).
Textual Amendments
F1Sch. 5 para. 5(2)(cc) inserted (29.4.1996 with effect in relation to trusts established on or after 29.4.1996) by 1996 c. 8, s. 120(8)(12)
Modifications etc. (not altering text)
C1 See Finance Act 1990 (c. 29) ss.31–40—roll-over relief for disposal of shares to employeeshare ownership trusts